Net income plus preferred dividends divided by average common equity is referred to as rate of return on common equity.

Name: Net income plus preferred dividends divided by average common equity is referred to as rate of return on common equity.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

Net income minus preferred dividends divided by average common equity is referred to as the rate of return on common equity. This formula calculates the profitability available to common shareholders.

Net Income Plus Preferred Dividends Divided by Average Common Equity